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5 Stocks Under $10 Making Big Moves - views
Stocks that are making large moves like these are favorites among short-term traders because they can jump into these names and try to capture some of that massive volatility. Stocks that are making big-percentage moves either up or down are usually in play because their sector is becoming attractive or they have a major fundamental catalyst such as a recent earnings release. Sometimes stocks making big moves have been hit with an analyst upgrade or an analyst downgrade.
Regardless of the reason behind it, when a stock makes a large-percentage move, it is often just the start of a new major trend -- a trend that can lead to huge profits. If you time your trade correctly, combining technical indicators with fundamental trends, discipline and sound money management, you will be well on your way to investment success.
With that in mind, let's take a closer look at a several stocks under $10 that are making large moves to the upside today.
SatCon Technology (SATC) is a clean energy technology provider of utility grade power solutions for the renewable energy market, primarily the large-scale commercial and utility-scale solar photovoltaic markets. This stock is trading up 4.4% at $1.18 in recent trading.
Today’s Range: $1.03-$1.26
52-Week Range: $0.93-$13.60
Three-Month Average Volume: 159,897
From a technical perspective , SATC is moving to the upside here right off some near-term support around $1 with above average volume. This move is quickly pushing the stock within range of triggering a near-term breakout trade. That trade will hit once SATC manages to clear $1.36 with high volume.
Traders should now look for long-biased trades once SATC manages to sustain a move or close above $1.36 with volume that’s near or above 159,897 shares. At last check, SATC has hit an intraday high of $1.27 and volume is a bit above its three-month average volume. If that breakout triggers soon, then look for SATC to re-test or possibly take out its 50-day moving average of $1.71.
American Apparel (APP) is a vertically-integrated manufacturer, distributor and retailer of branded fashion basic apparel. This stock is trading up 3.9% at $1.06 in recent trading.
Today’s Range: $1.02-$1.08
52-Week Range: $0.52-$1.21
Three-Month Average Volume: 208,064
From a technical perspective, APP is moving notably higher here with decent volume. This stock recently found buyers right off its 200-day at 82 cents and its 50-day at 87 cents with above average volume. Those buyers have now pushed the stock above two key overhead resistance levels at 95 cents and at $1. Now APP is quickly moving within range of triggering another major breakout. That breakout will trigger once APP takes out its April high of $1.09 with high volume.
Traders should now look for long-biased trades once APP sustains a move or close over $1.09 with volume that’s near or above 208,064 shares. If that breakout hits soon, then APP will have a great chance of re-testing or taking out its next major overhead resistance levels at $1.21 to $1.30, or possibly even $1.69.
Avalon Rare Metals
Avalon Rare Metals (AVL) is a Canada-based mineral exploration and development company. Avalon’s primary focus is on rare metals and minerals, including tin, lithium, tantalum, niobium, cesium, indium, gallium, zirconium and calcium feldspar. This stock is trading up 6.8% at $1.72 in recent trading.
Today’s Range: $1.63-$1.74
52-Week Range: $1.36-$4.90
Three-Month Average Volume: 402,827
From a technical perspective, AVL is ripping to the upside today right off some near-term support at $1.60 with above average volume. This stock has been trading inside of a large range for the past three months, with shares moving between $1.37 and $1.80 a share. Shares of AVL now look ready to challenge and potentially take out that upper-end of that range.
Traders should look for long-biased trades in AVL as long as the stock is trending above its 50-day at $1.48, and then once it clears some near-term overhead resistance at $1.72 to $1.80 with high volume. Look for a sustained move or close above $1.72 to $1.80 with volume that’s near or above 402,827 shares. If AVL manages to bust out of its range soon, then this stock could easily head back towards its 200-day moving average of $2.43.
Meritor (MTOR) is engaged in providing drivetrain mobility and braking solutions for original equipment manufacturers of trucks, trailers and specialty vehicles, as well as the related aftermarkets in the transportation and industrial sectors. This stock is trading up 10.1% to $5.10 in recent trading.
Today’s Range: $4.60-$5.10
52-Week Range: $3.98-$10.31
Volume: 1.35 million
Three-Month Average Volume: 1.38 million
From a technical perspective, MTOR is soaring higher here right off some near-term support at $4.50 with decent volume. This move has pushed MTOR back above its 50-day moving average of $4.84, which also happens to be a major near-term overhead resistance level.
Traders should now look for long-biased trades as long as MTOR is trending above $4.60 to $4.84 with strong upside volume flows. I would consider any upside volume day that registers near or above 1.38 million shares as bullish. If MTOR can hold that trend, then look for this stock to re-test and possibly take out its next major overhead resistance level $5.60 to $5.80, or possibly even its 200-day moving average of $6.31.
Quest Rare Minerals
Quest Rare Minerals (QRM) is an exploration stage company, engages in the identification and discovery of rare earth deposits in Canada. This stock is trading up 3.1% to $1.30 in recent trading.
Today’s Range: $1.26-$1.31
52-Week Range: $1.14-$5.12
Three-Month Average Volume: 132,942
From a technical perspective, QRM is moving notably higher here right off some near-term support at $1.20 with light volume. This move is quickly pushing QRM within range of triggering a near-term breakout trade. That trade will hit once QRM takes out some near-term overhead resistance at $1.39, and then once it clears its 50-day moving average of $1.49 with high volume.
Traders should now look for long-biased trades as long as QRM is trending above $1.20 to $1.18, and then once it clears $1.39 to $1.49 with heavy volume. Look for volume off a sustained move or close above those levels that’s near or above 132,942 shares. If we get that breakout soon, then look for QRM to re-test or possibly take out its next major overhead resistance levels at $1.60 to $1.81, or maybe even $1.90 to $2.20.
To see more stocks under-$10 that are making notable moves higher today, check out the Stocks Under-$10 Moving Higher portfolio on Stockpickr.
-- Written by Roberto Pedone in Winderemere, Fla.
At the time of publication, author had no positions in stocks mentioned.
Roberto Pedone, based out of Windermere, Fla., is an independent trader who focuses on stocks, options, futures, commodities and currencies. He is also an outside contributor to Beconequity.com and maintains the website Maddmoney.net, which he sold to Blue Wave Advisors in 2008. Roberto studied International Business at The Milwaukee School of Engineering, and he spent a year overseas studying business in Lubeck, Germany.